Top reasons for Deal lease extension

Main reasons to start your Deal lease extension today:

A Deal leasehold property depreciates with the years remaining on the lease.

Deal leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Deal enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Deal you would be well advised to see if your lease has between seventy and ninety years left. There are compelling reasons why a Deal flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay

Deal property with a lease extension has roughly the same value as a freehold

Leasehold premises in Deal with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Lenders may not lend on a short lease

Banks and Building Societies have specific criteria when loaning monies charged on leasehold homes. Many will simply not lend at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired below 75 years as adequate security. As well as impacting your ability to sell, it is also relevant where you are intending to remortgage your Deal home.

Get in touch with one of our Deal lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Deal,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Deal valuers.

Deal Lease Extension Example Cases:

Jasper, Deal, Kent,

Jasper was the the leasehold proprietor of a 2 bedroom apartment in Deal on the market with a lease of a little over fifty eight years left. Jasper on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and secured satisfactory resolution informally and sell the property.

Deal case:

In 2014 we were contacted by Dr Alexandra Morel who, having bought a purpose-built flat in Deal in July 2006. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar residencies in Deal with 100 year plus lease were in the region of £235,600. The average amount of ground rent was £60 invoiced every twelve months. The lease expired in 2088. Having 62 years left we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.

Deal case:

In 2009 we were e-mailed by Dr F Robinson who, having owned a ground floor apartment in Deal in January 1999. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable flats in Deal with an extended lease were in the region of £174,200. The average amount of ground rent was £55 collected annually. The lease came to a finish on 4 February 2077. Considering the 51 years left we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.